Peoria Butternut bakery could reopen under new management

Like the bread once baked here, hope may be rising that life will return to the Butternut bakery that closed here in November, costing more than 100 people their jobs. Hostess Brands Inc., the previous owner, shut down the baking facility at 1511 W. Lincoln Ave. along with 32 other bakeries across the ...

Like the bread once baked here, hope may be rising that life will return to the Butternut bakery that closed here in November, costing more than 100 people their jobs.

Hostess Brands Inc., the previous owner, shut down the baking facility at 1511 W. Lincoln Ave. along with 32 other bakeries across the country after failing to settle a national strike among one of its baking unions.

“The Peoria plant is included among the 20 that Flowers Foods is trying to acquire. We’re pleased with the outcome of the bankruptcy court review in which our bid was approved this week,” said spokesman Keith Hancock.

Georgia-based Flowers, in business since 1919, purchased the Peoria plant and 19 other bakeries in the Hostess liquidation sale for $360 million. Flowers expects the Hostess deal to be completed in the second half of 2013.

The company already operates 44 bakeries, producing bread under the Nature’s Own and Tastykake labels.

In addition to the Butternut name, Flowers will now be able to produce bread under the Wonder, Home Pride, Nature’s Pride, and Merita brands — all acquired from Hostess.

Other Hostess brands, such as Twinkies, Ding Dongs and Ho Hos, were purchased by other firms and are expected to return to supermarket shelves by this summer.

About 100 employees at the Peoria plant, members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, lost their jobs when the plant closed.

Hancock said it was too early to release any specifics on the reopening of the Peoria plant or the other bakeries the company has acquired.

George Deese, chairman of the board and CEO for Flowers, spoke about the company’s acquisition of the Hostess bakeries earlier this week at a news conference. “This process is not over. Now, the transaction must continue through the regulatory process. We anticipate completing the transaction in the second half of the year. Because the transaction is not finalized and for competitive reasons, we will not share any specific plans regarding the pending acquisition,” he said.

Deese did note that his company is doing well. “Flowers Foods’ year-to-date sales are up 20 to 25 percent and our earnings outlook is strong,” he said.

Steve Tarter can be reached at 686-3260 or starter@pjstar.com. Follow his blog, Minding Business, on pjstar.com and follow him on Twitter @SteveTarter